Merchandizing + Markups + Markdowns

Question 1

List Price, Net Price, Trade Discount Formula (Merchandizing)

Answer 1

N = L(1-D)

OR

N = L(1 - D)(1 - D)

Question 2

Rate of Markup (Markups)

Answer 2

ROMU = M/C x 100%

Question 3

Gross Profit Margin (Markups)

Answer 3

GPM = M/S x 100%

Question 4

3 Markup Formulas

Answer 4

S = C + M

M = E + P

S = C + E + P

Question 5

What does each letter stand for? (Markups)

S
C
M
E
P

Answer 5

S = Selling Price 
C = Unit Cost
M = Markup 
 E = Overhead Expenses 
P = Profit

Question 6

What does each letter stand for? (Markdowns)

D
S
Sr
ROMD

Answer 6

D = Markdown
Sr = Sales Price (S - D)
S = Selling Price 
ROMD = Rate of Markdown

Question 7

3 Formulas for Markdowns

Answer 7

ROMD = D/S

D = S x ROMD

Sr = S(1 - ROMD)